Wednesday, September 17, 2025
5:30 PM
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
Conference Room 4A & Virtual Participation
Council Budget and Finance Committee
Agenda
September 17, 2025Council Budget and Finance
Committee
Agenda
NOTICE: The Council Budget and Finance Committee will hold a hybrid meeting in Conference Room 4A and virtually via Zoom.
How to submit written Public Comment:
Send an email to [email protected] by 2:00 p.m. the day of the meeting. Please identify the Agenda Item Number in the subject line of your email. Emails will be compiled into one file, distributed to the Council Budget and Finance Committee and City staff, and published on the City's Meeting & Agenda Center under Documents Received After Published Agenda. https://hayward.legistar.com/Calendar.aspx When submitting written comments, indicate in the email if you want your comment read into the record.
Requests will be allowed provided the reading will not exceed three (3) minutes consistent with the time limit for speakers at Council Committee meetings. Email comments will become part of the record of Council Committee meetings.The Chair can limit the time for reading written comments.
When: Sep 17, 2025 05:30 PM Pacific Time
Topic: Council Budget and Finance Committee - September 2025 Please click the link below to join the webinar:
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Password: BudgeT@917
Or join by phone:
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CALL TO ORDER
AB 2449 TELECONFERENCE NOTIFICATIONS AND CONSIDERATION
ROLL CALL
PUBLIC COMMENTS:
Limited Only to Items on the Agenda and Submitted Prior to the Meeting.
APPROVAL OF MINUTES
Review and Approve of the Council Budget and Finance
Committee May 21, 2025, Meeting Minutes
MIN 25-0751.
Attachments: Attachment I Minutes
September 17, 2025Council Budget and Finance
Committee
Agenda
REPORTS/ACTION ITEMS
Discuss Fall Budget Revision and Future Topics (Oral Report by Assistant City Manager Thomas)
RPT 25-0812.
Attachments: Attachment I Staff Report
Annual Review of City Issued DebtRPT 25-0633.
Attachments: Attachment I Staff Report
Attachment II Debt Summary
COMMITTEE MEMBER/STAFF ANNOUNCEMENTS
ADJOURNMENT
Next Meeting - 5:30 p.m., Wednesday, October 15, 2025
The City of Hayward's Open Data Portal was designed to allow the public to explore, visualize, and download publicly accessible data. The Open Data Portal allows a clear view of the City's financial performance. Access to the portal may be found at https://haywardca.opengov.com/CITY
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: MIN 25-075
DATE: September 17, 2025
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Review and Approve of the Council Budget and Finance Committee May 21, 2025, Meeting Minutes
RECOMMENDATION
That the Council Budget and Finance Committee (CBFC) reviews and approves the May 21, 2025, CBFC meeting minutes.
SUMMARY
The CBFC held a meeting on May 21, 2025, and the draft minutes are attached for the CBFC’s review and approval.
ATTACHMENTS
Attachment I 05/21/2025 CBFC Meeting Minutes
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ATT ACHMENT I
COUNCIL BUDGET & FINANCE COMMITTEE MEETING
Meeting Minutes of May 21, 2025
Call to Order: 5:32 p.m.
Members Present: Mayor Salinas, Councilmember Bonilla Jr, Councilmember Syrop
Members Absent: None
Staff: Michael Lawson, Regina Youngblood, Mary Thomas, Sharif Etman, Franchesca Hatfield, Nicholas Mullins,
Guests: None
Public Comments: None
1. Approval of Meeting Minutes from April 16, 2025
Moved by Councilmember Syrop, Second by Councilmember Bonilla, Jr.
Action: Minutes reviewed and unanimously approved.
2. Transient Occupancy Tax (TOT) Review
Interim Finance Director Etman presented.
Mayor Salinas Questions:
A. Is it common practice for hotels to increase prices in preparation for large events?
We’ll definitely see a rate increase based on demand in other places.
Hotels have an open network where they will potentially call each other and ask for room rates. We put in a small factor to account for the Super Bowl and World Cup if it were to occur. However, it’s not going to be something that holds 100% occupancy for very long. We did factor that in there, but we certainly don’t want to lose the revenue that will be coming in. We are trying to find that right spot for revenue.
B. Did we notify the hoteliers that we were going to potentially raise the TOT raise?
We put out the notice for CBFC and the Council meeting.
Mayor Salinas suggested a PowerPoint slide showing real time hotel pricing be presented when the item returns to Council. He also
recommended discussion on a full corp press plan to capture potential revenue coming through the City in the next year with City anniversary and active Bay Area events.
Councilmember Syrop Questions:
A. Councilmember Syrop asked for clarification on the total TOT increase. We’re recommending an even 12 with an even 2% excise for a total 14% to match cities like San Leandro, while exercising the right to increase once the excise tax sunsets.
B. We budgeted for 12.5% during first discussions on budget, will this affect the deficit from 12.6 to 12.7?
It will change slightly. This year is softer than the previous year. We have a bump for the Super Bowl and different pieces. I think it’s marginal.
Action: The Committee received the report and recommended the 12% TOT rate.
3. FY 2025-26 Budget Work Session Debrief (Oral Report) Interim Finance Director Etman presented.
Councilmember Syrop Questions:
A. Regarding changing our coverage to realize potentially 1 million in savings, is there any way to approve a budget that incorporates or projects to reap those savings?
That’s our intent, we’re spit balling numbers. Our goal is to show movement using the analogy of the ship course correcting. We would expect it to go from 12 to 11 to 10, in the Fall it would be 9 or 8, showing trajectory. I fully expect a different number.
B. Clarification was asked on the budget addendum and the digital version update.
The budget book is a digital copy of three systems put together, and it becomes complicated to change the actual book in pieces opposed to sharing directly with Council. Our current focus is on the budget rather than the book itself. We can do a full book revise once complete.
C. In regard to Bonilla, Jr’s. homelessness comment on the budget book, what is the right number from the County?
Uncertain, something that we can look into; it’s not clear on either side.
Councilmember Bonilla, Jr. Questions:
A. Can we revive the budget message before it goes to Council? Can you figure out the homelessness figure?
Absolutely, the budget message will be updated. Two things will be adjusted as of today: the homeless number piece and TOT. We can certainly make any other adjustments.
B. Councilmember Bonilla, Jr., stated he felt more comfortable passing the budget on the 17th if it meant more budget reductions and allowed for the upcoming weeks to address the budget with urgency on finding these reductions. Whatever could be done to drive down the reserve ask would make Council more comfortable with a decision.
Mayor Salinas Questions:
A. Who will author the updated budget message?
It’s up to the Council. It makes sense for Michael Lawson, the Acting City Manager to draft it.
Action: The Committee received the report and provided feedback.
4. Review and Approve the FY 2024-25 Agenda Planning Calendar A. Mayor Salinas asked for insight on how Measure funds are parked in fund balances.
B. Councilmember Syrop requested the Hayward Economic Development Corporation (HEDC) present to CBFC before the full Council. He also asked for a focused conversation on the City’s financial liability of maintaining the City’s sanctuary status with the recent Federal Administration pressures, and the potential financial impact it may have on the City. Lastly, he asked for a recourse on the WIFA Loan Action: The Committee reviewed the calendar and provided feedback.
Committee Members/Staff Announcements: None.
Adjournment: The meeting was adjourned at 6:19 p.m.
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 25-081
DATE: September 17, 2025
TO: Council Budget and Finance Committee
FROM: Assistant City Manager
SUBJECT
Discuss Fall Budget Revision and Future Topics (Oral Report by Assistant City Manager Thomas)
RECOMMENDATION
That the Council Budget and Finance Committee reviews the schedule to prepare for the fall budget revision and provides input on the 2025 agenda planning calendar.
SUMMARY
In light of the City’s financial situation, staff plan to prepare a series of written updates for the full City Council over the next two months in preparation for the fall budget revision. Staff are seeking Committee Members’ feedback on the context and cadence of these updates, as well as the schedule of information reports for the Committee.
ATTACHMENTS
Attachment I Staff Report
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ATTACHMENT I
DATE: September 17, 2025
TO: Council Budget and Finance Committee
FROM: Assistant City Manager
SUBJECT: Discuss Fall Budget Revision and Future Topics
RECOMMENDATION
That the Council Budget and Finance Committee reviews the schedule to prepare for the fall budget revision and provides input on the 2025 agenda planning calendar.
SUMMARY
In light of the City’s financial situation, staff plan to prepare a series of written updates for the full City Council over the next two months in preparation for the fall budget revision.
Staff are seeking Committee Members’ feedback on the context and cadence of these updates, as well as the schedule of information reports for the Committee.
BACKGROUND & DISCUSSION
As part of the FY 25-26 budget adoption, Council directed staff to return for a fall revision with a proposal that reduces or eliminates the deficit for the fiscal year. Since June, staff have intensively analyzed the City’s finances to better understand the deficit and evaluate potential cost saving strategies. Through this analysis, staff have found that the financial picture is worse than what was presented in the adopted FY 25-26 budget. Staff have communicated this new picture to the City Council and the community.
In light of the City’s financial situation, staff plan to prepare a series of written updates for the full City Council over the next two months in preparation for the fall budget revision.
Staff are seeking Committee Members’ feedback on the context and cadence of these updates. Below is an initial list. Staff will share a more comprehensive proposal at the September 17, 2025, meeting for discussion.
Initial list of written updates:
By September 30:
o Measure C update
ATTACHMENT I
o FY26 First quarter salary & benefits expenditure trends By October 15:
o FY25 unaudited summary of general fund
o Summary of funds that are supported by transfers from the general fund o FY26 First quarter supplies & services expenditure trends By October 30:
o Quarterly general fund revenue update
In addition to the list above, staff prepare annual informational reports for the Committee for oversight and transparency. Staff are suggesting the following informational reports, which are in line with what has been presented to the Committee in past years. Staff are seeking Committee Members’ feedback on this suggested calendar.
DATE SUGGESTED TOPICS (subject to change)
October 15, 2025 City Benefit Liabilities and Funding Plan Water Minimum Purchase Quantities (Report from Director of Public Works & Utilities)
November 19, 2025 FY 2025 Annual Audit Process (Presentation by External Auditor)
December 17, 2025 Fall Revise Debrief
Mid-Year and FY 2027 Budget Process and Calendar Review January 21, 2026 Investment Portfolio Review (Presentation by External Investment Manager)
February 18, 2026 General Fund Long-Range Financial Model Update March 18, 2026 FY 2026 Mid-Year Budget Review
April 15, 2026 FY 2027 Proposed Budget Discussion, including the Mayor & City Council’s Budget
May 20, 2026 TBD
June 17, 2026 FY 2027 Budget Debrief
July 15, 2026 Council Recess
August 19, 2026 TBD
September 16, 2026 Review of City Issued Debt
Recommended by: Mary Thomas, Assistant City Manager
Approved by:
_________________________________
Jayanti Addleman, Interim City Manager
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 25-063
DATE: September 17, 2025
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
Annual Review of City Issued Debt
RECOMMENDATION
That the Committee accepts this report on the status of City Issued Debt.
SUMMARY
This report provides an update of the City’s issued debt and includes the City’s most recent credit rating issued by Standard & Poor’s (S&P) Global in September 2023.
ATTACHMENTS
Attachment I Staff Report
Attachment II City Summary Debt
CITY OF HAYWARD Printed on 9/12/2025Page 1 of 1
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DATE: September 17, 2025
TO: Council Budget and Finance Committee
FROM: Interim Director of Finance
SUBJECT: Annual Review of City Issued Debt
RECOMMENDATION
That the Committee accepts this report on the status of City Issued Debt.
SUMMARY
This report provides an update of the City’s issued debt and includes the City’s most recent credit rating issued by Standard & Poor’s (S&P) Global in September 2023.
BACKGROUND
The City of Hayward, like most cities and municipal agencies, incurs and manages debt as part of the normal course of business, leveraging different financing instruments to provide immediate access to funding for significant capital projects, equipment, and other specific projects. City staff prepares informational sections included in the City’s annual budget document and the annual financial statements that include sections summarizing the City’s debt. Throughout the year, this information comes in various forms to the Council and the Committee; however, this report is meant to provide a comprehensive summary of the entire portfolio.
DISCUSSION
The City uses debt to finance the cost of capital improvements through various debt instruments (see list below). Debt service payments are generally made on an installment basis, typically annually or semiannually. This document contains debt service information for the General Fund and all other funds, including anticipated debt issuances that will be issued prior to the end of the fiscal year as have been approved by Council during the FY 2025-26 budget process or separate resolution. Debt service payments of previously issued debt, as well as planned issuances, are budgeted and approved annually by the Council – these obligations are funded through identified tax and/or fee supported revenues that include the General Fund, Enterprise Funds, and Internal Service Funds.
Debt Instruments – The City and Successor Agency of the Hayward Redevelopment Agency currently maintain the following types of debt. Attachment II shows further detail.
City-Issued Long-Term Debt Debt as of
6/30/2025
Certificate of Participation $38,296,020
Private Placement Bonds $1,900,379
Special Tax Bonds (CFDs only) & Limited Obligation Improvement Bonds (LID only)
$3,488,701
Internal Fund to Fund Loans $2,695,776
Tax Allocation Bonds (Successor Agency Only) $17,615,000 Total Government Activity Debt $63,995,876
State Water Resources Control Board Loan $10,910,004
Loans Payable (Energy Efficient Loan) $1,596,443
Wastewater Revenue Bonds $124,885,000
Total Business-Type Activity Debt $137,391,447
Total City-Issued Long-Term Debt $201,387,323
New Debt
On February 25, 2025, City Council adopted a resolution authorizing the issuance and sale of Wastewater Revenue Bonds to finance capital improvements to the Wastewater System, including the Water Resources Recovery Facility (WRRF) improvements, and approving related agreements and actions1. The maximum principal amount authorized was $133,000,000 and the City sold $124,885,000 in 2025 Wastewater Revenue Bonds at a true interest cost of 3.96%2. The amount due for FY 2025-26 is debt interest, with the first principal payment due in FY 2029-30.
City-Issued Debt
Attachment II provides a basic summary of the debt the City currently maintains.
The City’s Annual Comprehensive Financial Report (ACFR) and annual budget document both contain further detail on the various debt issuances with explanations of uses and sources of funds. Hayward is a charter city and, as such, legally does not have a debt limit. A useful tool for comparison to peer agencies, who are subject to this limit, is to calculate what the legal debt limit and margin would be if Hayward were a general law city. This calculation and information are described below.
1 CITY OF HAYWARD - File #: LB 25-003
2 CITY OF HAYWARD - File #: LB 25-010
Debt Limit & Margin
The legal bonded debt limit for the City is $4.69 billion. The City does not have any bonded debt that is subject to this limitation – resulting in a legal bonded debt margin of the entire $4.7 billion. However, if the City’s debts were subject to this limit, the City has issued $42.9 million of outstanding debt, which is approximately $4.65 billion below the limit.
The City’s projected General Bonded Debt Outstanding as of June 30, 2025, will total $42.9 million and represents 0.15% of taxable property value or $265 per capita.
Debt Limit Computation (projected June 30, 2025) –
Total FY 2025 projected assessed valuation (less exemptions) $31,310,005,674 Debt limit (15% of assessed value) $4,696,500,851
Amount of legal debt applicable to the debt limit $42,892,174 Legal debt margin (if Hayward were a general law city) $4,696,500,851 Amount above or (below) Legal Debt Margin ($4,653,608,677)
Credit Ratings
Credit ratings are opinions about credit risk; they are published by a rating agency that has analyzed the City’s ability and willingness to meet its financial obligations in accordance with the terms of the debt obligations. Credit ratings have a significant impact on the interest rate the City will pay when issuing debt. In August 2023, Fitch Ratings issued a rating of AA assigning a positive outlook primarily attributed to the City’s strong revenue growth prospects, moderate long-term liability burden, moderately-elevated fixed costs, and consistently strong reserves relative to expected revenue volatility and budget flexibility. A critical component of the rating agency review is the City’s financial management status - i.e., appropriate reserve levels, plans to reduce liabilities, fiscal policies, etc. If the City fails to maintain these areas of fiscal control, the City could see a reduction in future ratings.
In September 2023, as part of the City’s 2023 Refunding COPs, Standard & Poor’s (S&P) Global issued a rating of AA with a stable outlook included that there should be no change to the existing rating or rating outlook. In February 2025, Standard & Poor’s (S&P) Global issued a long-term rating of AA+ with a stable outlook to the Wastewater Revenue Bonds.
FISCAL IMPACT
There is no fiscal impact associated with this report as it is informational only.
STRATEGIC INITIATIVES
This agenda item is a routine operational item and does not relate to any Council’s Strategic Initiatives.
NEXT STEPS
Staff will continue to actively monitor the City’s debt levels and report annually to the Committee and City Council the funding status.
Prepared by: Nicholas Mullins, Sr. Management Analyst
Recommended by: Mary Thomas, Assistant City Manager
Approved by:
Jayanti Addleman, Interim City Manager
City of Hayward Debt Summary ATTACHMENT II
Issuance
Date
Maturity
Date Interest Rate Original Debt Debt as of 6/30/2025 Total Debt as of 6/30/2025
Annual P&I
(FY 2026)
General Fund 8,457,174$
16Refunding COP FY2016 FY2027 2.60%-2.76% 19,813,775$ 3,861,020$ 1,980,630$ 15Fire Station #7/Firehouse/Clinic FY2015 FY2030 2.84% 5,500,000$ 1,900,379$ 452,854$ 15Fire Station #7 Loan from Water FY2016 FY2035 2.00% 3,421,000$ 2,695,776$ 137,741$ Measure C Fund 34,435,000$
23Refunding COP FY 2024 FY2035 5.00% 37,030,000$ 34,435,000$ 4,378,625$ Internal Service Fund - Fleet -$
15 TDA Fire Truck Loan FY2015 FY2025 2.92% 1,272,000$ -$ -$ Water 124,885,000$ -$
25 Wastewater Revenue Bonds FY2025 FY2055 4-5% 124,885,000$ 124,885,000$ 5,041,913$ Sewer 12,506,447$
SWRCB Loan FY2006 FY2029 0.00% 54,550,018$ 10,910,004$ 3,059,007$ CEC Solar Energy Loan #7505 FY2011 FY2025 3.00% 2,450,000$ -$ -$ CEC Solar Energy Loan-Phase II FY2020 FY2038 1.00% 2,150,955$ 1,596,443$ 131,271$ Recycled Water -$
SWRCB Loan-Recycled Water FY2017 FY2049 1.00% 27,058,436$ -$ -$ Total Governmental and Business Activity Debt 180,283,621$ Fiduciary 3,488,701$
13Community Facility District #1 FY2014 FY2033 4.13% 7,076,294$ 3,488,701$ 532,996$ Successor Agency of the Hayward
Redevelopment Agency 17,615,000$
RDA Repayment Agreement with GF* FY2016 FY2022 LAIF 11,156,841$ 800,000$ 16 RDA TABS FY2017 FY2036 2.00%-5.00% 35,270,000$ 17,615,000$ 3,228,625$ Special Assessment Districts -$
LID 17 FY2000 FY2025 4.20%-6.13% 396,014$ -$ -$ Total City-Issued Long-Term
Debt $ 201,387,323
*Outstanding balance according to State of California Department of Finance approved ROPS 20-21 Determination.